CA FTB 3840, California Like-Kind Exchanges

Taxpayers who exchange from a relinquished property in California and acquire replacement property out of California must report the transaction on FTB 3840, California Like-Kind Exchanges. Read the latest February 2021 compliance update from the California Franchise Tax Board on this requirement.

1031 Basics: What Not To Do/Failed Exchanges

Delayed exchanges, under IRC Section 1031, are the most common exchange format and strict statutory rules and requirements exist to obtain 1031 tax deferral. In a delayed exchange, a taxpayer must meet a number of time deadlines after closing on the sale of a relinquished property:

1. Acquire the replacement property within a maximum of 180 calendar days after closing on the sale of relinquished property, or the day the taxpayer’s tax return is due, whichever is earlier (the “Exchange Period”)
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2. Either acquire all replacement property or properties or properly identify all potential replacement properties within 45 calendar days from the relinquished property closing (the “Identification Period”).

Below are three tax court decisions highlighting what not to do in a delayed exchange…

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Webinars: 1031 Exchanges Issues in Today’s Market

Existing Homes Sales in 2020 Best Since 2006

Existing home sales came in at 6.76 million in 2020 on a seasonally adjusted annualized rate (SAAR), the best performance seen since 2006 according to the National Association of Realtors® (NAR). Annual 2020 sales were up 22.2 percent on a SAAR, while the median price (not seasonally adjusted) for the year was up 9.0 percent… Read More »